Estimating the Impact of Time-Invariant Variables on FDI with Fixed Effects

Davies, Ronald B.; Ionaşcu, Delia; Kristjánsdóttir, Helga

doi:10.1007/s10290-008-0153-0

Cited by 44 publications

(30 citation statements)

References 26 publications

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“…12 In subsequent analysis, I do estimate a series of separate fixed-effects regressions for single-and dual-class investable firms alone. 13 Others that use the fixed effects vector decomposition approach include Lensink and van der Molen (2010) and Davies et al (2008).…”

Section: Regression Estimatesmentioning

confidence: 99%

Investability, corporate governance and firm value

O’Connor

2012

Research in International Business and Finance

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Dedicated to the memory of my baby daughter Orla. JEL classification: G15, G34, F36Keywords: Investability Corporate governance Tobin's q a b s t r a c tIn this paper, I show that "investable premia" are greatest for transparent, well-governed firms. I find that single-class share investable firms and better-governed firms reap the largest valuation gains from becoming investable. Dual-class share firms do gain from becoming investable, but their gains are much lower than that of single-class share firms. These findings suggest that the failure on the part of firms to remedy agency conflicts prior to becoming investable only serves to greatly reduce, or even nullify their "investable premia".

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Section: Regression Estimatesmentioning

confidence: 99%

Investability, corporate governance and firm value

O’Connor

2012

Research in International Business and Finance

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“…X uk contains all proxies for trade costs including physical distance and virtual proximity. Y k includes control variables specific to country k such as population size and GDP 7 b is a fixed production cost parameter.…”

Section: Felbermayr and Toubal (2010) Modelmentioning

confidence: 99%

Virtual proximity and audiovisual services trade

Hellmanzik

Schmitz

2015

European Economic Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Note: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). Terms of use: Documents inThe views expressed are those of the authors and do not necessarily reflect those of the ECB AbstractAudiovisual services such as music and movies in digital formats have gained substantial importance over the last decade. This paper analyses audiovisual services in a gravity model framework. In particular, we explore the role of virtual proximity -a new proxy for cultural proximity based on bilateral hyperlinks and bilateral website visits between countries -and find that 'virtually-proximate' countries trade significantly larger amounts of audiovisual services. Our results show that virtual proximity also has a larger impact on trade in audiovisual services than on total services trade. Moreover, in line with Hanson and Xiang (2011), our analysis indicates that in the audiovisual services sector, global fixed export costs dominate bilateral fixed export costs for most countries in our sample.Keywords: International trade; audiovisual services; cultural proximity; hyperlinks; internet JEL Classification: F12, F15, Z10.ECB Working Paper 1826, July 2015 1 Non-technical summaryUp to the early 2000s, cultural products were largely traded in the form of goods, but due to technological advancements over the last decade, they increasingly appear in the services sector. Accordingly, the role of audiovisual services -as reflected by ever increasing digital music and movie sales -has grown substantially over the past decade. Moreover, audiovisual services are contentiously discussed in international trade negotiations, since music, movies and television shows play a key role in transmitting culture and values across the globe. Hence, international trade in audiovisual services and its determinants has been of high interest for both economic researchers and policy-makers.This paper analyses the determinants of audiovisual services trade in a gravity model framework. In particular, we explore the role of virtual proximity -a new proxy for cultural proximity based on bilateral hyperlinks on webpages and bilateral website visits between countries. The idea is to reflect, for instance, how often British or French internet users set links to or visit websites from the United States. The underlying assumption is that cultural proximity of two countries increases with the interest shown in each others' web content.We consider the audiovis...

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“…Paper by Davies et al (2008) applies the panel fixed effects with vector decomposition estimator to three FDI data sets to estimate the impact of time-invariant variables on FDI while including fixed effects. Omission of fixed effects is found to significantly bias the results, leading to contradictory predictions regarding the effect of trade costs and culture across data sets.…”

Section: Chaptermentioning

confidence: 99%